Research On The Development Of Small And Medium-sized Enterprises In China Under The New Normal Economy

Small and Medium Enterprises(SMEs)are important components of China's national economy.It is playing an irreplaceable role in stabilizing employment and promoting the economic development,compared with other types of enterprises.The report of the 19 th National Congress of the Communist Party of China once again emphasizes that the government will unswervingly consolidate and develop the public economy,encourage,support and guide the development of non-public economy,which provides firm policy support for SMEs.In the meantime,SMEs are facing opportunities and challenges when China's economy enters into a“new normal” phase,featuring a general environment of the slowdown in economic growth,structural upgrade,replacement of growth drivers and international anti-globalization trend.Therefore,it is of great significance to study the development state of SMEs under the new normal economy and to explore a new path to promote the healthy and sustainable development of SMEs in the new environment.Based on the practical problems faced by SMEs in China,the study explores the problems from the external and internal perspectives.Firstly,it defines the connotation of SMEs and the new normal economy,and their related characteristics and importance.Secondly,from a macro point of view,it analyzes the opportunities and challenges brought by the new normal economy to SMEs,including the opportunities of macro policy,"the Belt and Road Initiative"(BRI),the new urbanization,and the upgrading consumption structure,as well as the challenges of weakening traditional advantages,the ecological constraints,the overcapacity and the international economic and environmental changes.Thirdly,it elaborates the main problems of the development of SMEs under the new normal economy from both external and internal aspects in a more detailed and microcosmic way.The paper discussed the external environment from four factors: policy environment,financial environment,legal environment and social environment.With respect to the internal environment,the paper discussed from four factors: innovation,talent,management and culture.Finally,through the research and analysis of the external and internal environmental problems of SMEs,the corresponding countermeasures are put forward,including: 1)improve the external environment of SMEs by transforming government functions,optimizing financial environment,improving laws and regulations,enhancing social service system;2)optimize theinternal environment of SMEs by developing their innovation abilities,perfecting their human resource management system,strengthening their enterprise management,and constructing corporate culture,so that SMEs can enhance their own strength through active participation of the reform of mixed ownership of state owned enterprises.It is anticipated that by enhancing the interaction between the government and enterprises,a joint force can be formed to drive the healthy and sustainable development of SMEs under the new normal economy.